Divorce can be an emotional and difficult time for individuals in Texas. People may have a very difficult time as they move forward from their shared life. However, people need to understand that a divorce is not simply a break up. But it is also the division of financial assets between the couple. Decisions made during the divorce can have a serious effect on a person's future financial health.
Therefore, it is important for individuals to understand how the division of real estate will affect their financial future. In order to do this, people should keep in mind some real estate basics.
One, an appraisal is very important. However, not every appraisal will be the exact same. An appraiser's value on a particular property will depend on many factors. It will depend on the unique property conditions of the real estate, the appraiser's knowledge of the local real estate market and the value assessed by the local municipality. Understanding how and why real estate is valued is important as individuals choose to sell or stay in the home.
In addition to asset valuation, individuals should recognize how to determine how much equity they have in the property. Equity in the property is not equal to the appraised value of the real estate. Instead, any liabilities owed on the property, including the mortgage, need to be subtracted from the appraised value. This will give individuals an idea of how much equity is in the property. This equity then needs to be split. However, in some cases individuals might also owe federal or state taxes from the sale of a property. This is particularly true if the home is an investment property or a vacation home. These taxes can lower the amount received by each person.
Understanding these real estate basics is important when moving forward in a divorce. When people are considering a divorce in Texas, they should understand all of their legal rights. An attorney can help individuals understand these issues.